Distributed generation and Demand Side Management

Distributed generation technologies have emerged against bad environment and energy crisis, and they have been developed well in recent years. Lots of people have paid more and more attention to smart grid at home and abroad. This article analyzes the important role of the distributed power generation in the modern network´s security and reliability, particularly the application and development of distributed generation (DG) in the smart grid. Demand Side Management (DSM) must balance the contradictions between the supply system and consumption, as an emerging power generation industry, the main feature is that they are close to the users and can operate independently or grid-connected. In addition to emphasizing the importance of DGs in DSM, paper demonstrates the importance and necessity of DGs and DSM´s coordinated operation in the smart grid.